By Sheri Kasprzak
New York, Nov. 16 - McKenzie Bay International, Ltd. said it completed a private placement of a secured convertible debenture for $2 million.
Cornell Capital Partners, LP bought the debenture, which bears interest at 10.14% and matures on Nov. 14, 2007.
The debentures are convertible into shares at a price equal to the lesser of $1.10 or 80% of the lowest closing bid price for the five trading days before conversion.
Cornell also received warrants for up to 2 million shares, exercisable at $1.00 each for five years.
The debenture was sold in addition to a $3 million debenture issued on Oct. 11, under the same terms.
Based in Farmington Hills, Mich., McKenzie Bay is a development-stage company with no operations. The company is moving into the business of developing wind-powered alternative energy systems.
Issuer: | McKenzie Bay International, Ltd.
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Issue: | Secured convertible debenture
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Amount: | $2 million
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Maturity: | Nov. 14, 2007
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Coupon: | 10.14%
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Price: | Par
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Yield: | 10.14%
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Conversion price: | The lesser of $1.10 or 80% of the lowest closing bid price for the five trading days before conversion
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Warrants: | For 2 million shares
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Warrant expiration: | Five years
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Warrant strike price: | $1.00
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Investor: | Cornell Capital Partners, LP
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Settlement date: | Nov. 14
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Stock price: | $0.79 at close Nov. 14
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